Tokyo-based former Magic: The Gathering card trading emporium and world’s largest BitCoin crypto-currency exchange Mt Gox has finally declared bankruptcy after losing 500 million dollars of BTC and pretending it was solvent for the better part of a year.
At its 2013 heights the site reputedly handled 70% of the world’s BitCoin exchange transactions, but soon after delays and limits on withdrawals began and by February the exchange had halted all BitCoin transactions (thankfully it stopped handling Magic cards some years before).
Several weeks of evasion then culminated in a bankruptcy filing at a Tokyo court, with French CEO Mark Karpeles apologising “for causing so much trouble.”
With the main exchange having suffered so many high profile problems for so long the value of BitCoins themselves was badly affected, but the protocol itself is believed to be sound and other exchanges continue to trade without issue.
MtGox still maintains weaknesses in the BitCoin protocol (or more likely weaknesses in its notoriously poorly coded exchange platform) allowed unknown hackers to make off with enough of its coin balances to force it into insolvency, all without being detected.
Needless to say a variety of alternative explanations substituting criminal conspiracy for sheer incompetence have emerged (to say nothing of those who maintain the entire currency is a grand pyramid scheme), although any official investigations have yet to even begin.
The Internet is filled with the wroth of those unfortunate enough to have stashed all their wealth in BitCoins rather than the physical security of a Black Lotus, and 2ch is no exception:
“So they are blaming it all on unauthorised accesses!”
“One guess as to where they originated – from themselves, most likely.”
“A pretty high level fraud scheme, all in all.”
“All according to plan.”
“Who ended up with all the coins then?”
“That pig is running I see!”
“Expect him in Dubai next month living the high life.”
“Have they not raided him yet?”
“Just look at that smug look on his face. Guess who did it.”
“He’s obviously been eating and drinking his fill these past few years…”
“Largess at the top and embezzlement probably account for all those coins. Serves anyone dumb enough to have traded with them right.”
“Even if he gets a sentence he will be out in a few years with millions secretly stashed in BitCoin accounts to enjoy.”
“BitCoin is too convenient for its own good – no way would governments let it go unmolested for long.”
“So much for the Magic The Gathering Online eXchange…”
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No wonder that shit is so corrupted and fucked up, they hired Douglas Reynholm from The IT Crowd.
You! Computer man! Fix my pants!
Wow now that you mentioned it O_o
You sir or madame deserve a interwebz.
whoa he really does look like him.
I bet someone didnt listen to Jen and typed 'Google' into google.
Bitcoin........what was it again?
A miserable little pile of secrets *throws wine glass*
Hahahaha
At least MTG cards are still worth something.
First silkroad got robbed (by their own staff), and then MtGOX bankrupt, i see bitcoin are very far away from "safe currency"
Would bang 24/7/365.
Any way someone can prosecute for fraud in court?
it was $64 million dollars not $500 millions
They lost 750,000 Bitcoins, at todays selling price of $579-650 per coin, the company lost around 500 Million USD of its users Bitcoins. They lost 100,000 of their own Bitcoins.
64 Million is the price attributed to their liabilities. While they only had half that in assets.
Before saying an article is wrong, check to see if your even right.
Kill 'em!! Kill 'em before they reproduce!!!
You know, a bank of Sperm with Sperm as a value coin would be something we could all have a part of.
And if you combine it with ova coins you can have exponential capital growth every 8-10 months -- and it has high liquidity too!
& in other news; "Quiznos, the second largest submarine sandwich restaurant chain in North America, announced they intend to file for bankruptcy debt protection because the company owes $570 million in debt." Coincidence? You decide.
The value of BTC wasn't hurt badly by Mt. Gox failing. After they stopped all trades it hardly dropped. Then tues when it went offline, it only went down 60 bucks. Its still trading strong around 550-700$
"le Oopsie!"
Given the digital nature of btc I'm surprised there hasn't been a story of significant loss from a crashed HDD, just a matter of time. As for mt.gotx, to bad ur not a bank, then you just apologies and get bailed out.
But there are:
http://money.cnn.com/2013/11/29/news/bitcoin-haul-landfill/
Most early bitcoin adopters are tech nerds who know better than that.
Lol dumbasses, people need to realize that there is no protection with bitcoins, you're gunna get burned, the majority of them are crooks, and the money is used in the online drug trade
Well duh. Why else would it hold such a high value? Its the lifeblood of the safest, most regulated and controlled drug market in the world.
The demand for money laundering has been around for as long as currency existed. A currency backed by this demand will have greater longevity than the US dollar backed by "In God We Trust."
Have we made any comment bashing the French on this site?
We were going to but they surrendered.
What a shame, they should have surrendered to the British during US independence war rather than helping the revolutionaries...
In a French ass restaurant, hurry up with my damn croissants!
Like "what could you expect from a french CEO?"
You want cross ants? I prefer mine happy.
Did anyone see the way he talked Japanese? "Moushiwake gozaimasen.... to omou" lol.Such rudeness. I lost $3000 in gox.
Brother keeps his bitcoins so we lost nothing.
lost nothing? look at bitcoin price.
Bitcoin is died man, no one wants it anymore.
The Liberatards will still want it.
They didn't learn from history about the Great Depression.
They didn't learn from history about the S&L scandal from the 80s.
They didn't learn during the bank failures in the 2000s.
And they aren't going to learn from this.
I bought in when they where $0.67-$1.83 a coin, I purchased 2,000 coins over a period of 3 months. I sold the coins when they hit $850-$910 a coin. I made nearly 2 million bucks. I'm 23 and set for life.
My mother always said the internet was garbage and I wouldn't make money with it.
1 Bitcoin is $565.20USD right now. My brother bought in when it was less then $100USD.
"is died"
Holy shit I tried watching the video where he apologizes but couldn't do it for more than 1 second, too cringeworthy
This is what happens when you don't do your homework: http://brokenlibrarian.org/bitcoin/
tl;dr version: The Bitcoin network and community is a gigantic goddamn mess of idiocy, greed, and bad decisions. Stand well clear.
If I'm not mistaken the idea of using MtGox was to turn your bitcoins into money or launder them through a few times so your bitcoin trail wasn't traceable.
Not to keep your bitcoins stored at MtGox for long periods. That's what your bitcoin wallet is for.
The Idea of using MtGox was to exchange Fiat for BTC. or to sell your BTC for Fiat. Its a currency Exchange. You can't launder money through most large currency exchanges, they fall under federal banking laws and have to have your full identity on file to include high res photos of your ID, proof of residency etc. MtGox had its own digital BTC wallet like any other currency exchange. Its the first place your currency sits after its been converted. You can then send it out of the Exchange into a private wallet. They stopped that a while back though when MtGox realized they where boned and had no more BTC's to give out.
Yeah, I'd rather take Black Lotus too.
Hackers. The internet is full of it.
Thank god I've been stashing away money in Lindens the last 8 years.
"ISK" FTW.
TF2 keys are a better "virtual currency" than bitcoin...
And I guess that'll keep me far, far away from Bitcoin.
Anyone got doge to spare?
+/u/dogetipbot 1800 doge verify